“From what I hear, we are talking about a private project in Bellevue,” Daniels said.

Reports surfaced last week that Donald Levin, a Chicago tobacco merchant and movie producer, recently visited the Seattle area and expressed interest in a real estate development that would include an arena. Levin is the owner of the minor-league Chicago Wolves hockey team, which is an affiliate of the Vancouver Canucks.

“(Levin) did admit that he’s been to Western Washington several times, he loves the area and he owns property on Vancouver Island,” Daniels said.

Daniels recently interviewed deputy NHL Commissioner Bill Daly, who confirmed efforts to bring the NHL to a new facility but did not mention Levin by name.

“He said, ‘Yes, there is a group that is interested in bringing hockey to the Seattle area,’” Daniels said. “He didn’t want to get into too much detail.”

Daniels said it was unclear if the group has set its sights on an NBA franchise to share the building. Most successful privately funded arenas are home to two franchises.

“History shows – D.C., Philly, Denver, where they’ve done these things – they’ve been filled up by an owner who owns an NBA and an NHL franchise,” Daniels said.

NHL franchises, however, can be had for about half the price of an NBA team. The Atlanta Thrashers were recently sold to an ownership group in Winnipeg for about $110 million. NBA franchises run closer to $300 million or more. The New Orleans Hornets and the Memphis Grizzlies are considered the most likely franchises to move in the near future.

Last week, Microsoft CEO Steve Ballmer said the main obstacle to getting the NBA back in the Puget Sound area was the lack of a proper arena and the will of some private entity to build one. Ballmer has long been rumored to be interested in bringing a team to Seattle, but he appears unwilling to foot the bill for the facility.

“The challenge there is a real estate challenge,” Ballmer said during a Seattle Rotary Club lunch at the Westin Hotel. “Honestly, the building that is KeyArena would not be able to have an NBA team that would be competitive.”

Ballmer estimated that a new facility could cost as much as $500 million.

Meanwhile, Levin has been tight-lipped about his plans. And he might not be the only one considering an Eastside arena project. Daniels suggested there were other groups talking about doing the same.

The biggest question for Seattle in all of this regards KeyArena. The building, which was most recently overhauled in 1995 for the Sonics, is teetering on the verge of becoming obsolete.

A state-of-the-art arena in Bellevue could siphon off major concerts and other events that still pass through Seattle Center. Bellevue could also become a candidate to host future Final Fours or political conventions, further eroding Seattle’s status as the cultural center of the Puget Sound.

The same fate could await the aging Tacoma Dome, which still attracts large concerts, and other assorted events.